Verisk Analytics, Inc. (NASDAQ: VRSK)

Sector: Industrials Industry: Consulting Services CIK: 0001442145
Market Cap 28.99 Bn
P/B 13.93
P/E 59.50
P/S 10.85
ROIC (Qtr) 22.32
Div Yield % 0.83
Rev 1y % (Qtr) 5.93
Total Debt (Qtr) 4.89 Bn
Debt/Equity (Qtr) 12.98
Add ratio to table...

About

Verisk Analytics, Inc., often recognized by its stock symbol VRSK, operates in the insurance industry as a prominent data, analytics, and technology provider. The company's main business activities revolve around offering predictive analytics and decision support solutions, primarily catering to property and casualty (P&C) insurance companies across most personal and commercial lines of business. These solutions are designed to enhance decision-making capabilities regarding risk and improve operational efficiency for clients. The company generates...

Read more

Investment thesis

Bull case

  • Operating cash flow of 1.35B provides strong 25.68x coverage of stock compensation 52.50M, indicating sustainable incentive practices.
  • Strong operating cash flow of 1.35B provides 3.16x coverage of SG&A expenses 426.30M, showing efficient operational cost management.
  • Robust free cash flow of 1.12B exceeds capital expenditure of 232.30M by 4.80x, indicating strong organic growth funding capability.
  • Tangible assets of 3.92B provide exceptional 7.75x coverage of deferred revenue 505M, showing strong service capability backing.
  • Robust tangible asset base of 3.92B provides 8.98x coverage of working capital 436.10M, indicating strong operational backing.

Bear case

  • Operating cash flow of 1.35B barely covers its investment activities of (421.30M), with a coverage ratio of -3.20, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.35B provides thin coverage of dividend payments of (243.30M) with a -5.54 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 2.11B provide limited coverage of acquisition spending of (181.10M), which is -11.64x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High financing cash flow of 709.30M relative to working capital of 436.10M, which is 1.63x suggests concerning dependence on external funding for operational needs.
  • Tax assets of 72.50M provide limited offset against tax liabilities of 219M, which is 0.33x, indicating potential future cash flow pressure from tax obligations.

Segments Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Consulting Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VRSK Verisk Analytics, Inc. 28.99 Bn 59.50 10.85 4.89 Bn
2 EFX Equifax Inc 23.01 Bn 48.18 7.65 4.81 Bn
3 BAH Booz Allen Hamilton Holding Corp 9.48 Bn 11.30 0.83 4.14 Bn
4 FCN Fti Consulting, Inc 5.36 Bn 20.13 1.45 0.74 Bn
5 HURN Huron Consulting Group Inc. 2.29 Bn 21.14 1.38 0.65 Bn
6 ICFI ICF International, Inc. 1.43 Bn 22.60 0.96 0.62 Bn
7 CRAI Cra International, Inc. 1.10 Bn 25.41 1.63 0.19 Bn
8 SBC SBC Medical Group Holdings Inc 0.48 Bn 11.17 2.71 0.03 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 5.16 1.96
EV to Cash from Ops. EV/CFO 33.79 5.36
EV to Debt EV to Debt 6.59 58.47
EV to EBIT EV/EBIT 43.32 18.59
EV to EBITDA EV/EBITDA 29.88 20.71
EV to Free Cash Flow [EV/FCF] EV/FCF 42.85 11.61
EV to Market Cap EV to Market Cap 1.11 -835.88
EV to Revenue EV/Rev 12.05 5.73
Price to Book Value [P/B] P/B 13.93 3.44
Price to Earnings [P/E] P/E 59.50 22.21
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.79 0.70
Dividend Payout Ratio % Div Payout % (Qtr) 26.40 4.25
Dividend per Basic Share Div per Share (Qtr) 1.74 0.32
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 21.76 6.40
Interest Coverage Int. cover (Qtr) 9.14 92.47
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 92.94 -330.08
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 360.24 126.66
Dividend Growth (1y) % Div 1y % (Qtr) 15.23 0.43
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2.10 -18.91
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.11 -12.32
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.84 -132.53
EBT Growth (1y) % EBT 1y % (Qtr) 1.67 -937.51
EPS Growth (1y) % EPS 1y % (Qtr) 2.33 -76.24
FCF Growth (1y) % FCF 1y % (Qtr) 151.69 -11.33
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 9.48 12.14
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.49 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.15 0.09
Cash Ratio Cash Ratio (Qtr) 0.93 2.02
Current Ratio Curr Ratio (Qtr) 1.19 4.88
Debt to Equity Ratio Debt/Equity (Qtr) 12.98 0.55
Interest Cover Ratio Int Coverage (Qtr) 9.14 92.47
Times Interest Earned Times Interest Earned (Qtr) 9.14 92.47
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 55.50 -16.97
EBIT Margin % EBIT Margin % (Qtr) 44.79 -96.24
EBT Margin % EBT Margin % (Qtr) 39.89 -22.60
Gross Margin % Gross Margin % (Qtr) 69.60 54.26
Net Profit Margin % Net Margin % (Qtr) 30.40 -25.32